Alstry Makes His Boldest Prediction Yet

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It has become clear that much of the World's economies are Ponzi Schemes, Insolvent, or Dependent On Ponzi Scheme/Insolvent economies to exist. In the very foreseeable future, nations will start having conflicts on whose currency is worth what compared to the other's currency.

As conditions continue to deteriorate, the conflicts are likely to intensify.

Right now we have significant military build ups around the world in very sensitive locations. Venezuela/Colombia....Saudi Arabia/Yeman......Iran/Israel plus.......to name a few.

When contemplating a nation's currency value, you are directly impacting the ability of that nation to sustain its soverignty and provide for its citizens.

As economic conditions continue to deteriorate due to current Zombulation intensification.....the liklihood of a MAJOR worldwide conflict breaking out is currently at the critical stage. Without going into too much detail.....much of what we currently value will likely have very little importance in the near future.

Unless the world brings integrity back to the respective economic systems......it seems almost inevitable that WW3 is within the foreseeable future.

Patience....When a patient fails to address an existing condition....rarely does it just go away.

Nomi Prins - former managing director of Goldman Sachs and head of the international analytics group at Bear Stearns in London - is saying the same thing that financial bloggers have been saying: The giant banks are manipulating their books to make themselves look profitable.

In fact, Prins says that this might be worse than the fraud which occurred at Enron:

Enron was the financial scandal that kicked off the decade: a giant energy trading company that appeared to be doing brilliantly—until we finally noticed that it wasn’t. It’s largely been forgotten given the wreckage that followed, and that’s too bad: we may be repeating those mistakes, on a far larger scale.

Specifically, as the largest Wall Street banks return to profitability—in some cases, breaking records—they say everything is rosy. They’re lining up to pay back their TARP money and asking Washington to back off. But why are they doing so well? Remember that Enron got away with their illegalities so long because their financials were so complicated that not even the analysts paid to monitor the Houston-based trading giant could cogently explain how they were making so much money.

Surely someone with Prins' financial background can sort out the accounting of the TBTFs?

In fact, no:

After two weeks sifting through over one thousand pages of SEC filings for the largest banks, I have the same concerns. While Washington ponders what to do, or not do, about reforming Wall Street, the nation’s biggest banks, plumped up on government capital and risk-infused trading profits, have been moving stuff around their balance sheets like a multi-billion dollar musical chairs game.

I was trying to answer the simple question that you'd think regulators should want to know: how much of each bank’s revenue is derived from trading (taking risk) vs. other businesses? And how can you compare it across the industry—so you can contain all that systemic risk?

The giant banks have played so many games of massaging numbers (see this), hiding losses off the books (see this) and - as Prins documents - failing to report core data and shuffling things around so that it is impossible to tell what they are doing.

Indeed, financial writers (like Reggie Middleton, Mike Shedlock, Tyler Durden, Karl Denninger and others) who have dug deep and analyzed the underlying data say that the giant banks are totally insolvent. This wouldn't be the first time that the biggest banks went bust and then covered it up over a period of many years.

Prins offers a solution:

The long-term solution is bringing back Glass-Steagall. Being big doesn’t just risk bringing down a financial system—it means you can also more easily hide things. Remember the lesson from the Enron saga: when things look too good to be true, they usually are.

The problem with Alstrynomics is that it is too optimistic about the future of world economies!!!!!!!! It ignores the extreme possibility for a deep depression that culminates in 145% unemployment on Pegasi 51c!!!!!!

By ignoring the economic problems of hypothetical exterrestial life, Alstrynomics can not possibly account for the severity of the depression on Earth, for instance Dubai, UK, US, China, etc ...

JakilaTheHunonomics is all about BEING CORRECT!!!! It is the only system of doomsday phophesy proven to be CORRECT ALL THE TIME!!!!

As subterrean home prices in the Jovian moon, Europa, fall 432%, the only clear conclusion is that it will help send CRE prices in the US down a whopping 850%!!!!!! We will have 213% unemployment if you use Great Depression-era statistics!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Michigan Department of Transportation is closing some of its rest stops for the winter. MDOT's Bob Felt says five rest stops are closing for the winter months, because they're hard to keep clear of ice and snow.

Felt says the same rest stops close every year. {Does this mean I should panic every year?} But he says most of the rest stops will remain open over the next couple months to maintain convenience and safety for travelers. {Thank goodness, I can postpone my panic for another couple of months--maybe then global warming will make it warm enough that they won't have to close the rest areas.} The rest stops in Mackinac, Mason, Cheboygan, and Oceana Counties will reopen in April.